PROFESSIONAL INDEMNITY INSURANCE FOR INSURANCE ... PROFESSIONAL INDEMNITY INSURANCE. FOR INSURANCE INTERMEDIARIES

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  • MUM CGPA IB BIBA 02 19

    PROFESSIONAL INDEMNITY INSURANCE

    FOR INSURANCE INTERMEDIARIES

    POLICY

    Insured by CGPA Europe under a programme underwritten and managed by

    Manchester Underwriting Management Limited

  • Page 2 of 22

    GENERAL INFORMATION:

    Interpretation In this Policy:

    • words and expressions appearing in bold type shall bear the meanings given against the word or expression in the section of this Policy headed 'Definitions' .

    • headings are for ease of reference only and shall not be taken into account in construing this Policy.

    • references to masculine include the feminine and vice versa; • the singular includes the plural and vice versa; • reference to any Act of Legislation, statute or statutory provision shall include any amendment

    or replacement; • references to any position, title or legislation shall include their equivalent in the relevant

    jurisdiction.

  • Page 3 of 22

    INSURING CLAUSES In return for Your payment of the premium, We shall indemnify You as follows: 1 Civil Liability

    up to the Limit of Liability (save where the limit of cover for any particular section is otherwise expressly provided for in this Policy) for any civil liability:

    1.1 incurred in the conduct of Your Business, and 1.2 arising from any Claim first made against You during the Period of Insurance;

    where the Claim arises out of any actual or alleged :

    a. breach of professional duty, negligent act, negligent error, negligent omission, negligent

    misstatement or negligent misrepresentation; b. libel or slander committed in good faith and without malice; c. dishonest or fraudulent act or omission; d. loss of client money; e. Your involvement in any Joint Venture; f. civil liability not included above, except as provided under any other Insuring Clause below.

    2 Liability for Loss of Documents

    up to the Limit of Liability in respect of any Claim first made against You during the Period of Insurance for the reasonable costs and expenses incurred (for which We have given prior written consent) in replacing or restoring Documents either owned by or belonging to a third party but which at the time of loss were Your responsibility or in Your custody in the conduct of Your Business and were discovered during the Period of Insurance to be damaged, lost, destroyed, mislaid or otherwise unobtainable and which, after diligent search, cannot be located.

    We will not indemnify You against any Claim or Loss arising directly or indirectly from:

    2.1 Documents which are stored on magnetic or electrical media unless such Documents are

    duplicated on magnetic or electrical media and deposited at a separate location with the intention t hat in the event of loss or damage the duplicate can be used as the basis for restoring the Documents to their original status.

    2.2 any Claim arising out of wear, tear and/or gradual deterioration, moth and vermin.

    3 Ombudsman Awards for any final and binding compensatory awards or determinations (including an award of costs) made against You by any Ombudsman appointed pursuant to the provisions of the Financial Services and Markets Act 2000, including the direct additional costs of taking any steps which You are directed to take in relation to any complainant, provided that :

    3.1 the Claim giving rise to the award or determination of the Ombudsman was first made

    against You and notified to Us during the Period of Insurance and;

    3.2 the Claim arises out of the conduct of Your Business.

    The Limit of Liability applying to this Insuring Clause shall be the maximum amount that such Ombudsman may award on a binding basis for any one claim. We will also indemnify You for Defence costs and expenses in respect of appealing such awards and/or compensation if, in Our sole opinion, there is a reasonable prospect of success.

  • Page 4 of 22

    4 Defence costs and expenses

    4.1 in relation to any claim or Loss arising from Financial Services Business, We shall pay Defence costs and expenses, which shall be inclusive within the Limit of Liability.

    4.2 We shall pay Defence costs and expenses in addition to the Limit of Liability in relation to any claim or Loss arising from any other business. However, in the event that: 4.2.1 the amount of any Loss paid or payable exceeds the Limit of Liability, Our liability to

    pay Defence costs and expenses shall not exceed the proportion that the Limit of Liability bears to the amount of Loss paid or payable;

    4.2.2 if We decide to make a payment to You pursuant to Claims Condition 5 below then We will have no further obligation to pay any Defence costs and expenses on Your behalf after the date upon which the payment is made.

    5 Regulatory Investigation Costs

    for all Defence costs and expenses incurred with Our prior written consent in connection with any Regulatory investigation proceedings:

    5.1 arising from Your Business and

    5.2 first brought against You in the Period of Insurance.

    This Insuring Clause includes any investigations brought by the Financial Conduct Authority and any other applicable local governing body.

    We shall not be liable for any penalty, award of costs or fine arising from such prosecution or investigation unless payable to a third party and compensatory in nature.

    The Limit of Liability applying to this Insuring Clause shall be Our total liability for all Defence Costs and Expenses arising and shall not exceed £500,000 in the aggregate.

    6 Compensation for Court Attendance

    in the event that We require You or any Employee to attend any court or other judicial tribunal we shall pay You compensation at the following rates: £500 per day for any current partner, member or director of Your firm £250 per day for any other current Employee.

    The Limit of Liability applying to this Insuring Clause shall not exceed £250,000 in the aggregate. No Excess is payable in respect of this Insuring Clause.

    7 Binding or Delegated Authorities

    for any Claim first made against You during the Period of Insurance arising out of the operation of any Binding or Delegated Authority issued or granted to You by any insurer or underwriter provided that all such Binding or Delegated Authorities have been declared to Us.

    8 Loss of Client Cover

    If following a claim paid by Us under this Policy (or any previous Policy underwritten by Us) You lose that client’s business provided that: 8.1 You prove to Us to Our satisfaction that the loss of that client’s business is as a direct

    consequence of the claim paid by Us and for no other reason and 8.2 Your accounts for the financial period in which You lose the client’s business show a

    loss in the Profit and Loss account We will indemnify You for the amount of such loss in the Profit and Loss account provided always

  • Page 5 of 22

    that: 8.3 We will not pay more than the commission or fees that You received in relation to that

    client in the 12 month period prior to the date of notification of the claim to Us; and 8.4 You provide to Us at Your own expense such evidence as is necessary to

    unequivocally support the loss stated in 8.2 above and its link to the claim paid by Us. If You and We are unable to agree the amount of the loss, You and We agree to the appointment of an expert by the President for the time being of the Institute of Chartered Accountants in England and Wales, whose decision shall be binding on You and Us and whose costs shall be shared equally between You and Us.

    The Limit of Liability applying to this Insuring Clause shall be £100,000 in the aggregate and the Excess shall be £2,500. We will not indemnify You for any loss arising from any Excess or any claim or claims exceeding the Limit of Liability of the Policy under which the claim was paid by Us.

    9 Fidelity

    for any amount up £250,000 in the aggregate during the Period of Insurance in respect of your own direct Loss which You shall discover during the Period of Insurance that You have sustained by reason of any dishonesty or fraud of any Employee of Yours provided that: 9.1 such dishonesty or fraud was with the intent to cause loss to You or to obtain personal

    gain either for the Employee themselves or others and 9.2 Your accounts have been prepared or certified by an independent accountant and 9.3 any dishonesty or fraud by persons acting together shall be treated as giving rise to one

    claim. We will not indemnify any person committing or condoning dishonesty or fraud. The Excess in respect of this Insuring Clause shall be £2,500.

    Claims under more than one Insuring Clause Provided always that, in relation to all Insuring Clauses, in the event that a single claim or a series of claims arising out of or in connection with one originating cause or source should result in Your seeking an indemnity from Us under more than one of the Insuring Clauses in this Policy then if We have already paid the full amount of the Limit of Liability We shall not be obliged to provide You with any further indemnity in respect of such claim or series of claims.

  • Page 6 of 22

    EXCLUSIONS These exclusions are applicable to the entire Policy unless otherwise specified. We will not